A look at different web app business models including advertising, freemium and subscription, and the choices that startups face when trying to generate revenue from an application.
6. Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009
7. Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009
8. Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009
9. Who needs a business model anyway?
- Dick Costello, Feedburner
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009
10. Who needs a business model anyway?
- Dick Costello, Feedburner
“With this kind of traffic, we'll figure it out”
- John Doerr, Google Board
http://www.burningdoor.com/askthewizard/
Thursday, 28 May 2009
11. Web app business models Advertising
34%
Payments
32%
Subscription
14%
Long game
6% 3rd party supported
14%
http://www.boxuk.com/blog/monetizing-your-web-app-business-models
Thursday, 28 May 2009
14. Free love?
Critical mass
Advertising down
User costs
Bandwidth
Storage
Support
Scaling
Thursday, 28 May 2009
15. “The problem with free is that every time you double the size of
your database the cost of maintaining the site grows 6 fold. The
bigger you get as a free site the less money you make per visit
and the more it costs to service a visit.”
- Markus Frind
Thursday, 28 May 2009
19. 200 users @ £20 per month = £4,000 a month
= £48,000 a year
Thursday, 28 May 2009
20. 200 users @ £20 per month = £4,000 a month
= £48,000 a year
4000 users @ £20 per month = £80,000 a month
= £960,000 a year
Thursday, 28 May 2009
21. 200 users @ £20 per month = £4,000 a month
= £48,000 a year
4000 users @ £20 per month = £80,000 a month
= £960,000 a year
CHA CHING!!
Thursday, 28 May 2009
27. conversion rate = 2.5%
cost per user = £2 a year
Thursday, 28 May 2009
28. conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
Thursday, 28 May 2009
29. conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
4000 paying @ £20
Thursday, 28 May 2009
30. conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
4000 paying @ £20 156,000 free
Thursday, 28 May 2009
31. conversion rate = 2.5%
cost per user = £2 a year
Total Users 160,000
4000 paying @ £20 156,000 free
£960,000 - £320,000 = £640,000
Thursday, 28 May 2009
36. Lessons learned
Find your niche audience
Charge people!
Be careful about what you give away
Creative with business models
Agile business development
Thursday, 28 May 2009